SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15497 / September 17, 1997
SECURITIES AND EXCHANGE COMMISSION v. PAUL H. BORG, Civil Action No. Civ
97-1914 PHX(EHC) (D. Arizona, filed September 16, 1997)
The Securities and Exchange Commission ("Commission") today announced
the filing of a complaint against Paul H. Borg ("Borg"), of Mesa, Arizona,
a former semiconductor product sector sourcing buyer for Motorola, Inc.,
charging him with insider trading. Simultaneously with the filing of the
Commission's complaint, Borg consented to the entry of an order of
permanent injunction from further violations of the antifraud provisions of
the federal securities laws. Borg also agreed to pay disgorgement of
$5,250 of illegal trading profits, plus prejudgment interest, and to pay a
civil monetary penalty of $5,250.
The complaint alleged that Borg traded in the securities of Ibis
Technology Corporation ("Ibis"), a Danvers, Massachusetts-based company, in
advance of an October 2, 1995 public announcement that Ibis had entered
into a manufacturing agreement with Motorola. According to the complaint,
on September 20 and 29, 1995, after having assisted in negotiating the
terms of the agreement for his employer, Motorola, Borg illegally purchased
a total of 2,000 shares of Ibis common stock. After the public
announcement, on October 3, 1995, the price of Ibis' common stock increased
nearly 50%, to $7-5/8 per share, on heavy trading volume. As a result, the
complaint alleged, Borg realized illegal trading profits of $5,250.
Borg neither admitted nor denied the allegations in the complaint.
The complaint, which was filed in the United States District Court for the
District of Arizona, alleged that Borg violated Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
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